History and Overview Of The Business
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| Fully describe the business's activities |
This practice is made up of Financial Management (FM) Consulting, normal Accounting & Tax Services. The owner does a lot of the marketing and consulting and performs the FM work for a client in Johannesburg. The practice has a larger base of clients in Cape Town. |
| When was the business established? |
2005 |
| How long has the owner had the business? |
Seller started it |
How Does The Business Operate
|
| How does the business operate on a daily basis |
Owner operated. Accounting done by staff, FM & Management work by the owner. |
| How are the clients attracted to the business? |
Word Of Mouth
Website
Strategic Relationships
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| What Advertising/Marketing is carried out? |
Only the Website. |
| Does the business have any contract work? |
Yes, important that you take these over and maintain these as it is a sizeable part of the business |
| What competition exists? |
Normal competition for the industry
|
| Seasonal Trends? |
There is a bit of more work to complete during tax season. Jan and February with annual year ends is obviously busier. August for provisional tax is also busier |
Financial Information
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| Vat Registered? |
No, structured for the various income streams. Also depends where the contract sits, business or seller. |
| Vat Documentation on File? |
|
| Management Accounts? |
Yes, current and available |
| Audited Financials? |
Yes, 2018 |
| What as Cash/Credit Split? |
Terms of 30 days |
| Debtors Book Age Analisys |
Most of clients up to date, 30 – 60 days |
| How can you improve the profitability? |
More clients should be added and the service offering can be expanded. |
| Is Seller Finance available and if so what is it? |
Yes, in line with selling accounting practices the seller will accept a 60% cash payment and subject to a proper hand over and turnover warranty the balance over a 12 month period to an APPROVED buyer. A structured deal will thus be considered. Please note the seller is emigrating and a fast handover will take place. |
Staffing Of the Business
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| What is the total number of Staff? |
6 staff members that include the owner & his wife. Thus 4 to be taken over. This will also assist with continuity and be a condition of a warranty. Branch Manager has been with the owner for 10 years |
| Staff Special Perks and Bonuses? |
Yes, to be discussed during DD |
| Are the staff on Contract? |
Yes |
| Does any of the staff have management potential? |
Branch Manager has been with the owner for 10 years. |
| How involved is the Owner in running the business? |
Owner is hands-on. Personally also fullfilling the Finance Management roles |
Premises Of the Business
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| When Does the Current Lease ends? |
Month to Month |
| Is there an option to renew? |
Yes |
| What is the annual escalation % |
8-10% |
| What are the Trading Hours? |
Office Hours |
| What is the square meters? |
|
| Is a copy of the lease available? |
|
| Do You require a license? |
You will have to register or be registered with a body like, SAIBA/SAIPA/SACIA |
Assets Of The Business
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| Full Asset List available? |
This is the purchase of clients, a block of fees. If you would like to add assets that can be discussed in addition to the clients |
| Anything not included in the sale? |
Staff uses own laptop and server is Cloud based, so no expensive equipment included or required to maintain
|
| What is condition of the assets |
Furniture Requires Attention |
| Any Assets on Lease/HP that Buyer needs to take over? |
N/A |
| Are they insured at the moment? |
Yes |
SWOT Of The Business
|
| STRENGHTS |
Loyal client base
Consistent Clients
Large client base
Contracted Client
Remaining staff & Manager in place |
| WEAKNESSES |
Owner emigrating, short handover
Client Concentration
|
| OPPORTUNITIES |
Absorb these clients into your own practice for immediate benefit and cost savings
Expand service offering
Leverage off the strategic relationship |
| THREATS |
Potential loss of consulting Agreements
|
Summary
|
| Why is this a good business |
Client Retention with the remaining staff members, strong monthly income fixed. You with this will have Cape Town & Johannesburg options |
| Why is the owner selling it? |
Emigration and leaving on 20th June 2018 |